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Equity prices in Australia

Australian equity prices surged earlier this year, took a breather, then have recently surged again.

Greg Mankiw links to a (very comprehensive) survey suggesting US equity prices are cheap.

If that is so these RBA graphs suggest Australian equities remain cheap:

since 1995 Aussie share prices have increased slower than the S&P but generally followed […]

Share-market roller coaster

Today was one of the strangest days on the share market I can recall. Values have dropped dramatically over recent days and weeks but by early morning today the market had dropped a further (dramatic) 5.5%. By the time the market closed it had increased 6.7% to be up 1.2% on the day! Your scribe […]

Commodity price forecasts: Optimism & pessimism

Groups such as ABARE are bullish on the immediate prospects for commodity prices on the basis of a continuing Asian recovery. I have no idea if this perspective is accurate but equity markets obviously don’t think it is. BHP-Billiton shares at around $46 are selling at about 10X projected 2012 earnings while Rio Tinto at […]

Aussi sharemarket in 2011

Its that time of year when so-called stock market experts tip the course of the All Ordinaries Index over the coming year. Its also the time when cynics routinely (but quite fairly) deride the value of such predictions. Self interest motivates me to take a highly conditional attempt to work out what will happen.

If […]

An efficient market for Elders?

I have a few equity holdings – most of my wealth has been transferred through private school fees into the human capital of my children. Enjoy that kids, I will (vicariously) share in your future successes.


A comment on Aussie equity markets

Equity markets around the world have fallen dramatically over the past week as fear of the next financial disaster or just fear of the pure unknown has taken hold.  I have no idea what will happen or how long the current crisis will prevail – indeed I am unconvinced anyone does – but I have […]